What are Steps Entrepreneurs Must Take to Protect Big Ideas?
5 Steps Entrepreneurs Must Take to Protect Big Ideas
While great ideas can launch entrepreneurs into the throws of success, unfortunately, may don’t make the actions necessary to properly protect their innovations. Steps small business owners can take to protect their hard work include: securing patents and trademarks to protect their innovations and brands, proper execution from the beginning, avoiding giving away equity, and assembling a solid team.
Step 1: Protect Big Ideas. Secure patents to protect inventions and ideas — When it comes to intellectual property rights, securing a patent for a new idea or invention should be a top priority. Failing to get a patent isn’t something money will fix later. In addition to patents, you should keep any proprietary information regarding your product and business processes close to the vest. Designate those details as confidential and protect them through employment agreements, non-disclosure agreements and confidentiality agreements.
Step 2: File for a federally registered trademark to protect branding — Entrepreneurs should get a federally registered trademark, which typically offers broad protection. On top of the name of your product or service, you can protect the logo and tagline. In some cases, you can protect product packaging, if it’s creative and distinctive enough, as well as non-functional.
Step 3: Be the first to market with crazy execution — After you have secured your patent and trademark rights, or if for some reason you can’t protect your intellectual property rights, then it’s vital to bring your new product or service to market first – and execute the launch well. That way, any potential competition will be forced to play catch up.
Step 4: Resist giving away equity in the business — Many fledgling entrepreneurs mistakenly promise to give up a piece of their company, or equity, to someone in order to get the business off the ground. For example, say you hire a developer to create software for your company in return for a piece of equity in the business, and you don’t document the agreement. What could happen is the entrepreneur and the other party (the software developer in this case) end up disputing who owns what pieces of the company AND who owns the copyright to the software that was developed.
Step 5: Assemble a solid team to support your dream — Depending on the type of product or service in question, your key players may include a/an: intellectual property attorney, a corporate attorney, an accountant, a product development specialist, a marketing guru, and more.
For more information, see our blog post 5 Vital Steps Entrepreneurs Must Take to Protect Big Ideas.
Klemchuk PLLC is a leading IP law firm based in Dallas, Texas, focusing on litigation, anti-counterfeiting, trademarks, patents, and business law. Our experienced attorneys assist clients in safeguarding innovation and expanding market share through strategic investments in intellectual property.
This article is provided for informational purposes only and does not constitute legal advice. For guidance on specific legal matters under federal, state, or local laws, please consult with our IP Lawyers.
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